An agreement to buy or sell a fixed quantity of a commodity at a specific price on a specific date in the future. A position in the stock market can be protected or hedged using commodity futures. They can also be used to make directional bets on the underlying asset. Investors frequently mix up futures and options contracts. The holder of a futures contract is required to take action. The underlying asset must be purchased or sold at the stated price if the holder does not unwind the futures contract before it expires. The spot commodities market can be contrasted with commodity futures.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr